| Week 5 Template |
| a) Price variance = (actual price - standard price) times quantity bought |
| Actual price | Standard price | Quantity bought | Price variance | Favorable or Unfavorable |
| Metal tubing | 3.55 | 3.5 | 3000 | 150 | U |
| Leather | 7.52 | 7.5 | 1000 | 20 | U |
| Padding | 4.3 | 4.25 | 1650 | 82.5 | U |
| b) Wage rate variance = (Actual wage rate - standard wage rate) times actual hours |
| Actual wage rate | Standard wage rate | Actual hours | Wage rate variance | Favorable or Unfavorable |
| Direct labor | 15.52 | 15.5 | 1400 | 28 | U |
| c)Total price variance | 30.89 | 30.75 | 7050 | 280.5 | U |
| d) Quantity variance = |
| (actual quantity used in production - standard quantity used in production) times the standard price |
| Actual Quantity | Standard Quantity | Standard Price | Quantity variance | Favorable or Unfavorable |
| Metal tubing | 3000 | 3000 | 3.5 | 0 | F |
| Leather | 1000 | 1000 | 7.5 | 0 | F |
| Padding | 1650 | 1500 | 4.25 | 637.5 | U |
| e) Labor efficiency variance = (actual hours - standard hours) times standard wage |
| Actual hours | Standard hours | Standard wage | Efficiency variance | Favorable or Unfavorable |
| Direct labor | 1400 | 1500 | 15.5 | -1550 | F |
| f) Total quantity variance | -912.5 | F |
| TOTAL VARIANCES |
| Metal tubing | 150 | U |
| Leather | 20 | U |
| Padding | 720 | U |
| Direct labor | (1,522) | F |
| TOTAL | (632) | F |
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WK5Old_WorkP1.xlsx
